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Buying Ecuador Real Estate? Be Careful Of These Misconceptions About Cuenca

19/08/2015 12:38

Two misconceptions about the Ecuador real estate

There are a lot of assumptions about the Ecuador real estate situation in the country - especially if the buyers come from a foreign country. Naturally, expats wanting to buy property in this country would listen to the reports of past home buyers about Ecuador’s real estate market. That is one of the ways that they can make sound decisions about buying property in a country that is unknown to them.

However, there are two important real estate truths that potential home buyers should look into because they have changed over time within the Ecuador real estate market specifically.

First is about the bargain price of the properties in Ecuador. The other is about the fact that foreigners have affected the real estate market in the country.

Let us enter into these two because they have now become misconceptions that could drastically affect your decision in buying Ecuador real estate.

Two misconceptions about the Ecuador real estate

Thanks to the reputation of the country as being one of the top budget friendly retirement destinations, real estate investors have this notion that the prices of property in Ecuador is rock bottom. But here’s the truth - it is not really safe to assume that the prices of real estate in the country is the cheapest in the world. Truthfully, it is not. In fact, the prices of homes for sale in Ecuador have risen over the years. It is not 60% to 75% higher compared to the prices back in 2008.
Some people think they have bought a home in Ecuador at a bargain because they are comparing it with the prices in North American countries. Of course they will appear cheap. But you have to compare Ecuador real estate with the similar properties in the same country before you decide. That is how you determine if you are really getting a good bargain on the property that you are buying. Not only that, you have to consider the state of the home to determine if it is really the same value as what you are paying for it.

The next misconception that you need to correct about the Ecuador real estate is the notion that foreigners have an effect on the market - specifically in driving up the prices of the houses. While some expats are admittedly known to pay more for a home than they should, they are only a small percentage of the home buying market. In Cuenca, there are only 4,000 to 4,500 expats living here. Compared to the 500,000 and more natives, you can expect that the number of foreigners is too small to really have an effect. In fact, the real influencers are the locals and the overseas workers who have come home to invest in Ecuador real estate. Statistics show that the overseas workers comprise 30% of the market. The expats are only 1%.

But despite that, you still have to be cautious about the price that you will accept when buying a home in this country. Make sure that you only accept a price that is the same as the value of the home that you will pay for. While it will not really affect the market, it will have an effect on your budget.

There is no doubt that buying Ecuador real estate is a rewarding experience. Regardless of the location, land almost always appreciates. However, make sure that you get you facts straight before you make a final decision about your home purchase. Even if the properties in Ecuador is relatively cheaper than your home country, it is still a sizable purchase.